Reference no: EM13483685

You are the systems analyst for the wee willie Williams widget works company. You have decided to review the order processing system. All customer orders, which are all credit sales, arrive via email or by phone.

When an order comes in, the order processing clerk checks the customer's credit limit in the customer file (held on disk) and approves the credit sale, ensuring that the amount falls within the credit limit. Unapproved orders are sent to the credit department. If an order is approved, the order processing clerk prepares a standard order form and enters it into the computer's order transaction file on disk. The information on the form is also used to update the company's customer file (on disk) and then the order form is placed in the company's order file

When the credit department receives an unapproved order, the credit clerk first determines why the order has not been approved. If the credit limit has been exceeded, the customer is notified that his or her credit limit has been exceeded and that the merchandise will be shipped as soon as payment is received. If the customer's credit limit is not recorded in the customer file meaning that credit worthiness has not yet been approved, a credit application is sent to the customer along with a notification document stating that the order will be shipped as soon as the credit approval is granted.

The computer system, using the order transaction file, checks the inventory file to determine if the company has the products on hand that have been ordered. If the items are in stock, a packing slip is prepared for every order in the transaction file and a shipping notification is prepared and sent to the order processing department.

Once notification of shipped goods has been received by the order processing department, a customer invoice is prepared in triplicate. A copy is kept by the order processing department, another is sent to the accounting department so that the accounts receivable file can be update.